Cayman Islands Refutes Tax Haven Label

Jude Scott, CEO of the Cayman Islands’ financial services promotion agency, Cayman Finance, has taken aim at a report labeling the territory as a “tax haven.”

The report on international financial centers, issued by the non-profit US Public Interest Research Group and the Institute on Taxation and Economic Policy, also criticizes the territory for being slow to release private financial records and facilitating financial secrecy.

Scott responded to the criticism leveled at the territory noting that, not only is the Cayman Islands “transparent,” it has adopted more than twenty global financial standards and adheres to both the US FATCA rules and the OECD’s Common Reporting Standard.

“We meet none of the descriptions used by entities such as the OECD or Transparency International to define a tax haven. In fact, our system purposefully lacks any laws or regulations like double taxation treaties or foreign incentives that support the shifting of a tax base by foreign entities to avoid corporate taxes in their home jurisdictions,” said Scott.

“Reports such as this conveniently overlook how international finance centers like the Cayman Islands observe their commitment to global standards for transparency and cross-border information sharing with law enforcement and tax authorities,” added Scott.

While acknowledging every jurisdiction is at risk from those who attempt to get around the systematic safeguards, Scott said the laws and regulations adopted by the Cayman Islands make it a strong international partner to address such concerns.